Aldi and Lidl will no longer be able to block competitors in the UK

In the United Kingdom, Aldi and Lidl will be subject to the same licensing rules as traditional supermarket chains. This means the major competitors have gotten their way: they have long demanded a level playing field.

Exemption rule

Until now, the two German discounters were classified as stores with a limited product range, which allowed them, among other things, to prevent competitors from opening stores near their locations. That exemption was originally intended to support emerging players.

But because the two chains together have already captured about 20% of the market share, competitors such as Tesco, Sainsbury’s, Morrisons, Asda, and Waitrose asked the Competition and Markets Authority (CMA) earlier this year to amend the real estate regulations. Now, the British competition authority has indeed confirmed that Aldi and Lidl will be subject to the same rules as other major supermarkets in the country.

“We put in place rules to stop big supermarket chains from blocking rival stores opening in their area, and now those rules apply to Aldi and Lidl. This will help level the playing field and make sure shoppers get the best choice of products and prices in their area,” said Juliette Enser of the CMA.